The purpose of this study is to determine in subjects with Type 2 DM whether glycemic control can be achieved at least as effectively with an insulin regimen involving pre-meal inhaled insulin plus a single bedtime Ultralente injection as with a conventional subcutaneous insulin regimen involving 2 mixed Regular/NPH insulin injections per day. The toleration of safety of inhaled insulin therapy and its effects after 6 months , if any, on measures of pulmonary function.